Last week, stakeholders voted in favor of a plan to sell the Empire State Building as part of an IPO, setting the stage for what might be one of the largest public offerings the real estate industry has seen in years.

New York City has been known to devote a lot of time and money to preserving its historic buildings, and these efforts have extended to the maintenance of the mid-century glass towers that can be seen almost everywhere in Midtown Manhattan. But a new report suggests that we may be going about this the wrong way—according to the study by Terrapin Bright Green, an environmental consulting group, these old skyscrapers are so energy-inefficient that demolishing them and then rebuilding them would actually be better for the environment.

What exactly does a square foot of air look like? Instead of trying to visualize this rather abstract concept, simply picture anywhere between $250-$600 in cash. It’s a more concrete image, and in today’s Manhattan real estate market, it’s virtually the same thing. In the age of Ebay and Craigslist, we have learned that one man’s junk truly can be another man’s treasure, and empty space is no exception. Over the last few decades, the phenomenon of air rights has become a unique feature of New York City real estate, creating a massive multi-million dollar market quite literally out of thin air.

New York City’s history bears testament to the city’s resolute commitment to continually develop itself, which is why New York continues to be known as one of the world’s finest metropolises. One of the city’s latest efforts to encourage business and development in New York is the Hudson Yards Redevelopment Project, which recently got underway on the Far West Side of Manhattan. Close on this project’s heels comes the proposed rezoning of Midtown East, which aims to bring newer buildings to this already popular neighborhood. While these developments are occurring fairly independent of each other, there is some concern that one might hurt the chances of the other.

Ever since the Bloomberg administration approved the midtown rezoning proposal, developers have anticipated the likelihood of building world-class skyscrapers catering to globe-trotting corporate and residential interests alike. Midtown apartment and office buildings may already seem densely packed, but the protection of highly concentrated architectural landmarks have urged strict zoning laws until the recent rezoning proposal. Indeed, the combination of non-skyscraper and skyscraper construction has led to an uneven skyline with pockets of ambiguous air space in between--including the millions of feet above historic buildings. The trinity of landmarked churches in Manhattan’s midtown, St. Patrick's Cathedral, St. Bartholomew's Church and Central Synagogue, claim roughly 2 million square feet of air rights; with Bloomberg’s rezoning initiative, these historic buildings, which constantly require restoration, may be able to finally able to profit from modern construction’s ascendancy.

In an attempt to stay competitive on an international level, Mayor Bloomberg’s administration is fast-tracking a transformative rezoning plan for the area around Grand Central Terminal. The proposed changes would apply to the area between Fifth and Third Avenues from East 39th Street all the way up to East 59th Street, and the plan would open the door to replacing older buildings with large, ultra-modern high-rises in Midtown Manhattan. Bloomberg feels that the area has become outdated – office buildings in the area are 68-years-old on average – and wants to encourage new construction projects that would fully modernize the district.

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